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Investment Q&A

Not investment advice or solicitation to buy/sell securities. Do your own due diligence and/or consult an advisor.

Q: Hello 5i team, Could you explain what is gold streaming and how revenue is generated and taxed? What is the difference between streaming and royalties? Would you recommend investing in streaming companies such as franco nevada as an alternative to have gold in your portfolio or in conjunction with? Would this be considered in the income portion of a portfolio? If you know of a good source that explains it please post. Thanks in advance
Read Answer Asked by pietro on October 06, 2016
Q: Hi 5i team,

Can you provide comment on ssl and if you would condone a 5% investment. Also, with gold typically being a hedge to market/economic capitulation, can you comment on the 5% weight the 5i team typically prescribes please. If the overall portfolio dropped 20%, the 5% gold holding would have to increase nearly 4x to effectively hedge the loss. In this volatile market, would a heavier weighting would be a prudent defensive position?
Read Answer Asked by Erichsen on September 21, 2016
Q: Hi guys as always thank you for all you do for us. I am putting together a Gold Silver portfolio 5 or 6 positions max cash in $50K.1Streaming firm if 5 and 2 if I go 6 positions for a minimum 36 months maybe 48 months. Gold firms I'm considering AEM,DGC RIC,RGL, AR. Timing is not great. I can go in over next couple of months or do I go whole hog on a pull back day or two? Any further recommendations?
Thanks
David
Read Answer Asked by David on July 07, 2016
Q: Hello Peter & Co,
Because of the uncertainties in Central Banks' monetary policies, negative yields in some parts of the world and risk of Helicopter economics, I think it is time to get some exposure in Gold; I will start with half a position (2% of my portfolio equally divided among the 3 above.
Your opinion is most valuable
Antoine
Read Answer Asked by Antoine on May 30, 2016
Q: I would like to buy FNV. You say you are "very comfortable" with FNV. I've done some basic research and see that S&P Capital rates it a sell;TD as a hold; Thompson Reuters a buy. A news brief says "FNV files for mixed shelf of up to $2.0bln." INK Research shows that FNV insiders were doing lots of selling in March. HELP! How do I interpret all this?
Read Answer Asked by Elaine or Gerry on April 25, 2016
Q: I don't own any gold stocks but am thinking of adding them as insurance. I would buy a bit each month for the next few months. Goldcorp seems to be the worst of them performance wise? Would you still suggest this is the one I buy or would you prefer Agnico or FNV? I was thinking about putting 5% of my portfolio in it. Which stocks should I choose and what percentage of this 5% should each be? Or is one enough? Is gold better in a TFSA, RRSP or non-registered?
Read Answer Asked by Carla on January 08, 2016
Q: Peter and Team,

I believe gold is needed for portfolio insurance. It costs you to have it but the day you need it you will be very happy you had it.

My current portfolio breakdown is 86.7% equities including cash and 13.3% bonds. Of the equity exposure, 9.6% is cash, 7.3% gold and silver bullion, and 5.44% precious metals stocks (BTO - 1%, MUX - 0.33%, NGD - 0.83%, SGN - 0.2%, and Goldcorp is 3.1%). All of these are down from higher levels.

My question is about Franco Nevada. I like the company and the business model and am thinking of selling all or some of the stocks to replace with Franco Nevada. I currently have total exposure to PM's of 12.74%. Can you suggest if FNV is a good replacement for any or a group of the above? I think its cash position is still strong and it still makes free cash and pays a decent yield.

Your thoughts?
Read Answer Asked by Marc on July 22, 2015
Q: Do gold-producer stock-price declines suggest sector capitulation? Understanding that gold itself may be range-bound for some time, is there bounce potential for the producer stocks? Wrt FNV, how does one assess the relative contributions of gold vs. oil+gas? Please feel free to suggest an alternate vehicle for this sector; I never expected to see so many 'blue-chip' producers so far down.
Read Answer Asked by John on July 21, 2015
Q: Could you give me some history on why & when FNV started dealing in Oil/Gas royalties?? Their present break-down by revenue is 17% oil/gas royalties. Also, are FNV,OR,SSL,RGL valued by Enterprise Value/Free Cash Flow?? Pierre Lassonde says that analysts don't assign any value from the fact that FNV gets a free perpetual option on discoveries made on the land by the operators, and FNV gets a free perpetual option on the price of gold. Do you agree with this?
Read Answer Asked by Ralph on February 26, 2015